Moneycontrol
Jul 18, 2017 10:39 AM IST | Source: Moneycontrol.com

ACC hits 52-week high on robust Q2 numbers; declares dividend of Rs 11

The company's consolidated profit grew by 32.6 percent year-on-year to Rs 326.2 crore despite higher tax expenses. The growth was driven by strong operating income and revenue.

ACC hits 52-week high on robust Q2 numbers; declares dividend of Rs 11

Moneycontrol News

Share price of cement maker ACC touched 52-week high of Rs 1,798.85, rising nearly 3 percent intraday Tuesday on robust numbers declared by the company for the quarter ended June 2017.

The company's consolidated profit grew by 32.6 percent year-on-year to Rs 326.2 crore despite higher tax expenses. The growth was driven by strong operating income and revenue.

Revenue during the quarter increased 20.5 percent to Rs 3,959 crore compared with Rs 3,286 crore in same quarter last fiscal as cement sales volume increased 10.1 percent to 6.74 mt from 6.12 mt on year-on-year basis.

The company's operating profit shot up 37.7 percent to Rs 636.8 crore and margin expanded by 240 basis points to 18.4 percent Y-o-Y despite higher power & fuel and freight & forwarding expenses. Tax expenses during the quarter nearly doubled to Rs 155.6 crore from Rs 83 crore in same quarter last fiscal.

The company at its meeting held on July 17 has approved the payment of an interim dividend of Rs 11 per equity share.

Broking house CLSA has kept outperform rating on the stock with increased target price at Rs 2,050 (from Rs 1,925 earlier). It highlighted that the operating profit at 19-quarter high was led by strong volume growth. Further, it said that Jamul plant aided volumes and helped in lowering overall unit costs.

Goldman Sachs maintained neutral rating on the stock but raised target price to Rs 1,750 (from Rs 1,660 earlier). It feels the current valuation adequately reflected the cement upcycle benefits. It increased the 2017-19 volume estimates by 1 percent and reduced cash costs by 1 percent.

Motilal Oswal also retained neutral rating on the stock, saying the company continues to face medium-term concerns about cost structure. Meanwhile, it expects better profitability from ACC in CY17/CY18.

At 09:35 hrs the stock was quoting at Rs 1,783, up Rs 31.75, or 1.81 percent on the BSE.

Posted by Rakesh Patil
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